Bahamas successfully returns to international capital markets
NASSAU, Bahamas (CMC) — The Bahamas government on Wednesday said that it has successfully completed the execution of an international capital markets transaction, which included the issuance of an 11-year, US$1.067 billion bond to fund the repurchase of US$767 million in outstanding Eurobonds.
A statement from the Office of the Prime Minister said that as part of the transaction, authorities conducted a three-day investor roadshow, reaching over 60 accounts from North America, Europe and the Middle East.
It said participants expressed strong support for The Bahamas’ credit fundamentals, ongoing fiscal consolidation and economic outlook, driving positive transaction outcomes.
The US$1.067 billion new issuance benefited from supportive demand dynamics, closing with an orderbook that was 3.9 times oversubscribed and a final coupon and re-offer yield of 8.250 per cent, the government said, adding that this transaction further consolidates the favourable repricing of The Bahamas’ international yield curve.
It said the liability management operation extended the average maturity of outstanding Eurobonds by 2.1 years and reduced principal repayments by US$451 million over the next three years.
“Proceeds from the new issuance will be primarily allocated to fund the associated liability management operation, with a portion expected to support national development priorities, including infrastructure investments,” the government said.
It said that this transaction marks The Bahamas’ first return to international capital markets since 2022 and follows positive rating actions by Moody’s and Fitch in April 2025.
“The operation is part of a comprehensive external financing strategy aimed at diversifying funding sources and follows the successful execution of commercial financings with innovative credit enhancement mechanisms, including theUS$300 million Debt Conversion Project for Marine Conservation closed in November 2024 and the US$500 million international loan supported by a US$200 million Inter-American Development Bank guarantee in January 2024.”
The government said that Rothschild & Co and Hogan Lovells served, respectively, as sole financial advisor and international legal counsel to the Ministry of Finance, while BNP Paribas, Citi, and Deutsche Bank served as Global Coordinators and Joint Bookrunners, with CIBC FirstCaribbean serving as Joint Bookrunner.
